12.01 Average Rate of Return Method, NPV Method, and Analysis for a Service Company

Average rate of return method, net present value method, and analysis for a service company The capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Each project requires an investment of $380,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 10% for purposes Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place. Required: 1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place